{"id":30881,"date":"2026-04-28T07:54:51","date_gmt":"2026-04-28T07:54:51","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=30881"},"modified":"2026-04-28T07:55:41","modified_gmt":"2026-04-28T07:55:41","slug":"what-is-kyc-in-cryptocurrencies-and-how-it-works","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works","title":{"rendered":"What is KYC in cryptocurrencies and how it works"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#why_is_kyc_verification_important\" >Why is KYC verification important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#how_the_kyc_process_works_step_by_step\" >How the KYC process works step by step<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#how_long_kyc_verification_takes\" >How long KYC verification takes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#is_kyc_mandatory_to_buy_cryptocurrencies\" >Is KYC mandatory to buy cryptocurrencies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#difference_between_basic_kyc_and_advanced_kyc\" >Difference between basic KYC and advanced KYC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#difference_between_kyc_and_aml\" >Difference between KYC and AML<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#advantages_and_disadvantages_of_kyc_in_crypto\" >Advantages and disadvantages of KYC in crypto<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#frequently_asked_questions_about_kyc\" >Frequently asked questions about KYC<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#what_does_kyc_mean\" >What does KYC mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#what_documents_can_they_ask_for\" >What documents can they ask for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#how_long_does_verification_take\" >How long does verification take?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#is_it_mandatory_to_do_kyc_to_buy_crypto\" >Is it mandatory to do KYC to buy crypto?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kyc-in-cryptocurrencies-and-how-it-works\/#is_it_safe_to_upload_my_national_id_to_a_crypto_platform\" >Is it safe to upload my national ID to a crypto platform?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p><strong><a href=\"https:\/\/coinmarketcap.com\/academy\/glossary\/kyc?%3B%3Btheme=night&amp;%3Bapp=android\">KYC<\/a> (Know Your Customer)<\/strong>\u00a0is the legal requirement that forces financial businesses to verify the identity of their users through official documents.<\/p>\n<p>In the <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/7-frequently-asked-questions-about-investing-in-cryptocurrencies\">cryptocurrency<\/a> environment, it is that specific\u00a0<strong>identity verification process<\/strong>\u00a0that platforms request to confirm that each customer really is who they say they are. This procedure is\u00a0<strong>essential<\/strong>\u00a0because it helps to simply prevent crimes such as fraud, identity theft, and money laundering, allowing companies to comply with\u00a0<strong>current international regulations<\/strong>.<\/p>\n<p>The relevance of this process became evident in November 2022, when the crypto world was shaken by the bankruptcy of\u00a0<strong><a href=\"https:\/\/www.coindesk.com\/business\/2026\/04\/07\/cz-says-sbf-asked-for-billions-like-a-bologna-sandwich-as-ftx-collapsed\">FTX<\/a><\/strong>, the second largest exchange in the sector, due to mismanagement of customer funds. This\u00a0<strong>crucial event<\/strong>\u00a0highlighted the growing need for\u00a0<strong>robust KYC processes<\/strong>, especially in a market facing constant risks.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-30882 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/1-compressed-3-1.jpg\" alt=\"bitnovo_identity_verification\" width=\"612\" height=\"386\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/1-compressed-3-1.jpg 612w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/1-compressed-3-1-300x189.jpg 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>\n<p>For this reason, almost all\u00a0<strong>centralized exchanges<\/strong>\u00a0will ask you to complete KYC; they do this to guarantee the\u00a0<strong>security of funds<\/strong>, ensure\u00a0<strong>legal compliance<\/strong>\u00a0with regulators, and grant you\u00a0<strong>full access<\/strong>\u00a0to their services, such as\u00a0<strong>higher withdrawal limits<\/strong>. Although there are still alternatives to operate without this registration, they are usually much more complex and\u00a0<strong>risky methods<\/strong>\u00a0for the user.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"why_is_kyc_verification_important\"><\/span><strong>Why is KYC verification important?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The KYC process is\u00a0<strong>key<\/strong>\u00a0for companies to comply with regulations and prevent fraud. These are the main\u00a0<strong>benefits of KYC verification<\/strong>:<\/p>\n<ul>\n<li><strong>Avoid sanctions: <\/strong>Failing to comply with KYC can lead to\u00a0<strong>heavy fines<\/strong>\u00a0and legal problems.<\/li>\n<li><strong>Reduce fraud:<\/strong>\u00a0Verifying users helps\u00a0<strong>block fraudsters<\/strong>\u00a0and protect your platform.<\/li>\n<li><strong>Protect the consumer:<\/strong>\u00a0Preventing criminals from accessing your services reduces\u00a0<strong>identity theft<\/strong>\u00a0and scams.<\/li>\n<li><strong>Protect business reputation:<\/strong>\u00a0Compliance avoids\u00a0<strong>public relations crises<\/strong>\u00a0and generates\u00a0<strong>trust<\/strong>\u00a0with customers and authorities.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"how_the_kyc_process_works_step_by_step\"><\/span><strong>How the KYC process works step by step<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Entering the world of cryptocurrencies is exciting, but for your experience to be\u00a0<strong>safe and legal<\/strong>, platforms need to get to know you a little better. The KYC <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-verify-your-identity-in-bitnovo-step-by-step-with-kyc\">process<\/a> is, in essence, a\u00a0<strong>digital handshake<\/strong>: you prove who you are, and the exchange opens the doors to all its services with\u00a0<strong>total confidence<\/strong>.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-30883 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/2-compressed-3-1.jpg\" alt=\"bitnovo_id_document\" width=\"612\" height=\"408\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/2-compressed-3-1.jpg 612w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/2-compressed-3-1-300x200.jpg 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>\n<p>Although each platform has its nuances, the basic flow is designed to be\u00a0<strong>fast and efficient<\/strong>, combining\u00a0<strong>cutting-edge technology<\/strong>\u00a0with security reviews. Below, we detail the steps you will find on almost any exchange:<\/p>\n<table style=\"height: 165px;\" width=\"1140\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Phase<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\"><strong>What happens in this step?<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>Why is it important?<\/strong><\/td>\n<td>\n<p style=\"text-align: center;\"><strong>How long does it usually take?<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1. Registration and basic data<\/td>\n<td>You provide initial details such as your\u00a0<strong>full name<\/strong>,\u00a0<strong>date of birth<\/strong>, and\u00a0<strong>residence address<\/strong>.<\/td>\n<td>It establishes your\u00a0<strong>initial identity<\/strong>\u00a0and helps the platform create your user profile.<\/td>\n<td><strong>Immediate.<\/strong><\/td>\n<\/tr>\n<tr>\n<td>2. Identity document<\/td>\n<td>You must upload a photo of a\u00a0<strong>valid official document<\/strong>\u00a0(passport, driver&#8217;s license, or national ID, foreigner ID card, and in some cases\u00a0<strong>proof of residence<\/strong>).<\/td>\n<td>It allows\u00a0<strong>cross-checking<\/strong>\u00a0your personal data with a legal record issued by the government.<\/td>\n<td>From minutes to hours (if automatic).<\/td>\n<\/tr>\n<tr>\n<td>3. Selfie or facial verification<\/td>\n<td>You are asked for a\u00a0<strong>selfie<\/strong>\u00a0or a brief\u00a0<strong>video validation<\/strong>\u00a0(biometrics), sometimes holding your document.<\/td>\n<td>It confirms that\u00a0<strong>you<\/strong>\u00a0are the physical person present at the moment and that you match the photo on the document.<\/td>\n<td><strong>Immediate.<\/strong><\/td>\n<\/tr>\n<tr>\n<td>4. Review and validation<\/td>\n<td>The system analyzes the information using\u00a0<strong>automated software<\/strong>,\u00a0<strong>manual review<\/strong>\u00a0by experts, or a\u00a0<strong>hybrid approach<\/strong>.<\/td>\n<td>This is the\u00a0<strong>final filter<\/strong>\u00a0to detect altered documents and ensure you meet all requirements.<\/td>\n<td>Variable: From minutes to several\u00a0<strong>business days<\/strong>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"how_long_kyc_verification_takes\"><\/span><strong>How long KYC verification takes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As you can see in the last column, there is no fixed time. The final duration of your process will depend on two main factors within the exchange:<\/p>\n<ul>\n<li><strong>Automated validation: <\/strong>If the images are\u00a0<strong>clear<\/strong>\u00a0and the platform&#8217;s AI processes them correctly, you could be operating in\u00a0<strong>a few minutes<\/strong>.<\/li>\n<li><strong>Manual review:<\/strong>\u00a0If the system finds any doubt or inconsistency (for example, if your address does not match or the photo of your national ID is\u00a0<strong>illegible<\/strong>), a\u00a0<strong>human team<\/strong>\u00a0must review your case. This can extend the deadline to\u00a0<strong>several hours or even days<\/strong>, depending on the platform&#8217;s workload.<\/li>\n<\/ul>\n<p>Once the organization confirms that everything is in order, your account is\u00a0<strong>approved<\/strong>. This unlocks\u00a0<strong>full access<\/strong>\u00a0to buy, sell, and withdraw your cryptocurrencies without the restrictions that unverified accounts usually have.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-30884 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/3-compressed-3-1.jpg\" alt=\"bitnovo_selfie_verification\" width=\"612\" height=\"338\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/3-compressed-3-1.jpg 612w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/3-compressed-3-1-300x166.jpg 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"is_kyc_mandatory_to_buy_cryptocurrencies\"><\/span><strong>Is KYC mandatory to buy cryptocurrencies?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>KYC is not\u00a0<strong>strictly mandatory<\/strong>\u00a0for all cryptocurrency transactions, but it\u00a0<strong>is required<\/strong>\u00a0by the vast majority of\u00a0<strong>centralized exchanges<\/strong>\u00a0and regulated platforms to comply with\u00a0<strong>anti-money laundering (<a href=\"https:\/\/www.bloomberglaw.com\/external\/document\/XB8LV1T4000000\/banking-professional-perspective-aml-issues-in-cryptocurrency-an\">AML<\/a>) regulations<\/strong>. Although there are methods without KYC, they usually have\u00a0<strong>low limits<\/strong>,\u00a0<strong>higher risks<\/strong>, and\u00a0<strong>higher fees<\/strong>.<\/p>\n<p>In fact, although you can technically find exceptions, KYC has become the\u00a0<strong>industry standard<\/strong>\u00a0to guarantee a\u00a0<strong>safe, transparent, and legal<\/strong>\u00a0trading environment for everyone.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"difference_between_basic_kyc_and_advanced_kyc\"><\/span><strong>Difference between basic KYC and advanced KYC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Basic KYC<\/strong>\u00a0and\u00a0<strong>advanced KYC<\/strong>\u00a0are\u00a0<strong>tiered identity verification processes<\/strong>\u00a0on financial and crypto platforms. Basic KYC usually requires\u00a0<strong>name<\/strong>,\u00a0<strong>date of birth<\/strong>, and\u00a0<strong>address<\/strong>\u00a0for low limits, while advanced KYC adds\u00a0<strong>facial recognition<\/strong>\u00a0and\u00a0<strong>identity documents<\/strong>\u00a0(passport\/license) for\u00a0<strong>higher withdrawal limits<\/strong>.<\/p>\n<table style=\"height: 105px;\" width=\"1119\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Feature<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\"><strong>Basic KYC<\/strong><\/td>\n<td>\n<p style=\"text-align: center;\"><strong>Advanced KYC<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Requirements<\/td>\n<td><strong>Fundamental personal information<\/strong>\u00a0(full name, date of birth, country).<\/td>\n<td>Basic data +\u00a0<strong>photos of documents<\/strong>\u00a0(national ID, foreigner ID card, or passport) +\u00a0<strong>biometrics<\/strong>\u00a0(selfie\/facial).<\/td>\n<\/tr>\n<tr>\n<td>Purpose<\/td>\n<td><strong>Quick access<\/strong>\u00a0with limited functions.<\/td>\n<td><strong>Strict compliance<\/strong>\u00a0(anti-money laundering prevention) and\u00a0<strong>full unlocking<\/strong>.<\/td>\n<\/tr>\n<tr>\n<td>Operational limits<\/td>\n<td><strong>Low<\/strong>\u00a0(reduced withdrawals and deposits).<\/td>\n<td><strong>High<\/strong>\u00a0(maximum trading, withdrawal, and deposit limits).<\/td>\n<\/tr>\n<tr>\n<td>Ideal use<\/td>\n<td><strong>New users<\/strong>\u00a0trading small volumes.<\/td>\n<td><strong>Institutional accounts<\/strong>,\u00a0<strong>high-volume traders<\/strong>, or\u00a0<strong>OTC transactions<\/strong>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"difference_between_kyc_and_aml\"><\/span><strong>Difference between KYC and AML<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is very common to confuse these two terms because they always go hand in hand, but understanding their difference will help you see how platforms protect your\u00a0<strong>security<\/strong>\u00a0and that of your funds. Basically, while one is responsible for knowing\u00a0<strong>who you are<\/strong>, the other ensures that the game is\u00a0<strong>fair<\/strong>\u00a0at all times.<\/p>\n<table style=\"height: 196px;\" width=\"1118\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Feature<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\"><strong>KYC (Know Your Customer)<\/strong><\/td>\n<td>\n<p style=\"text-align: center;\"><strong>AML (Anti-Money Laundering)<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Definition<\/td>\n<td><strong>\u00abKnow your customer\u00bb<\/strong>: It is the\u00a0<strong>user identification<\/strong>\u00a0process.<\/td>\n<td><strong>\u00abAnti-money laundering\u00bb<\/strong>: It is the global\u00a0<strong>legal and technical framework<\/strong>\u00a0to prevent crimes.<\/td>\n<\/tr>\n<tr>\n<td>When it occurs<\/td>\n<td>It is done\u00a0<strong>during onboarding<\/strong>\u00a0(when you register or upgrade).<\/td>\n<td>It is a\u00a0<strong>continuous monitoring<\/strong>\u00a0that applies while you use the platform.<\/td>\n<\/tr>\n<tr>\n<td>Objective<\/td>\n<td>To verify that you are a\u00a0<strong>real person<\/strong>\u00a0through documents (national ID, foreigner ID card, selfie).<\/td>\n<td>To ensure that the\u00a0<strong>origin of funds is legitimate<\/strong>\u00a0and to prevent money laundering.<\/td>\n<\/tr>\n<tr>\n<td>Key actions<\/td>\n<td><strong>Identity validation<\/strong>,\u00a0<strong>biometrics<\/strong>, and\u00a0<strong>basic data verification<\/strong>.<\/td>\n<td><strong>Monitoring suspicious transactions<\/strong>,\u00a0<strong>reporting to authorities<\/strong>, and\u00a0<strong>risk analysis<\/strong>.<\/td>\n<\/tr>\n<tr>\n<td>Relationship<\/td>\n<td>It is the\u00a0<strong>gateway<\/strong>\u00a0and the\u00a0<strong>essential first step<\/strong>\u00a0of AML.<\/td>\n<td>It is the\u00a0<strong>comprehensive system<\/strong>\u00a0that encompasses laws, processes, and technology (such as machine learning).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>By working together, they form a\u00a0<strong>comprehensive security system<\/strong>\u00a0that protects both\u00a0<strong>user assets<\/strong>\u00a0and the\u00a0<strong>platform&#8217;s reputation<\/strong>. KYC gives the company the necessary data to know\u00a0<strong>who it is dealing with<\/strong>, and AML uses that foundation to monitor that subsequent actions are not unusual.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-31098\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/thedigitalway-computer-1591018_640-1.jpg\" alt=\"bitnovo_user_registration\" width=\"640\" height=\"419\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/thedigitalway-computer-1591018_640-1.jpg 640w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/thedigitalway-computer-1591018_640-1-300x196.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"advantages_and_disadvantages_of_kyc_in_crypto\"><\/span><strong>Advantages and disadvantages of KYC in crypto<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The debate about KYC is one of the most\u00a0<strong>urgent<\/strong>\u00a0in the community. On one hand, it is the key that opens the doors to the\u00a0<strong>traditional financial system<\/strong>\u00a0and greater\u00a0<strong>security<\/strong>; on the other, it represents a challenge for those seeking to maintain the\u00a0<strong>private<\/strong>\u00a0and\u00a0<strong>decentralized<\/strong>\u00a0essence of cryptocurrencies. Here is a\u00a0<strong>fair summary<\/strong>\u00a0of both sides of the coin:<\/p>\n<table style=\"height: 201px;\" width=\"1100\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Aspect<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\"><strong>Advantages<\/strong><\/td>\n<td>\n<p style=\"text-align: center;\"><strong>Disadvantages<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Security<\/td>\n<td><strong>Fewer scams:<\/strong>\u00a0Drastically reduces\u00a0<strong>money laundering<\/strong>\u00a0and\u00a0<strong>fraudulent activities<\/strong>.<\/td>\n<td><strong>Risk of breaches:<\/strong>\u00a0Storing sensitive data creates\u00a0<strong>databases<\/strong>\u00a0that can be targeted by hackers.<\/td>\n<\/tr>\n<tr>\n<td>Privacy<\/td>\n<td><strong>Trust:<\/strong>\u00a0Encourages\u00a0<strong>transparency<\/strong>\u00a0and protects your account against\u00a0<strong>identity theft<\/strong>.<\/td>\n<td><strong>Loss of anonymity:<\/strong>\u00a0Forces you to share\u00a0<strong>private information<\/strong>, which clashes with the original philosophy of crypto.<\/td>\n<\/tr>\n<tr>\n<td>Legality<\/td>\n<td><strong>Reduction of legal risk:<\/strong>\u00a0Allows exchanges to\u00a0<strong>operate under the law<\/strong>\u00a0and avoid sudden closures.<\/td>\n<td><strong>Centralization:<\/strong>\u00a0Introduces\u00a0<strong>centralized control<\/strong>\u00a0into an ecosystem that was born to be independent.<\/td>\n<\/tr>\n<tr>\n<td>Experience<\/td>\n<td><strong>Stability:<\/strong>\u00a0Contributes to a\u00a0<strong>stronger and more reliable<\/strong>\u00a0market for institutional investors.<\/td>\n<td><strong>Friction and delay:<\/strong>\u00a0The process can be\u00a0<strong>slow and frustrating<\/strong>, delaying immediate access to the platform.<\/td>\n<\/tr>\n<tr>\n<td>Accessibility<\/td>\n<td><strong>Full access:<\/strong>\u00a0Unlocks\u00a0<strong>high withdrawal limits<\/strong>,\u00a0<strong>bank deposits<\/strong>, and\u00a0<strong>official support<\/strong>.<\/td>\n<td><strong>Barriers to entry:<\/strong>\u00a0People without\u00a0<strong>official documents<\/strong>\u00a0or in\u00a0<strong>marginalized regions<\/strong>\u00a0are excluded from the service.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"frequently_asked_questions_about_kyc\"><\/span><strong>Frequently asked questions about KYC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"what_does_kyc_mean\"><\/span><strong>What does KYC mean?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>KYC is a\u00a0<strong>comprehensive identity verification process<\/strong>\u00a0designed to confirm that you are a\u00a0<strong>real person<\/strong>, not a scammer or fraudster. This verification has become\u00a0<strong>mandatory<\/strong>\u00a0on most major cryptocurrency exchanges.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-30885 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/4-compressed-3-1.jpg\" alt=\"bitnovo_document_review\" width=\"612\" height=\"344\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/4-compressed-3-1.jpg 612w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/04\/4-compressed-3-1-300x169.jpg 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"what_documents_can_they_ask_for\"><\/span><strong>What documents can they ask for?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Passport<\/strong>,\u00a0<strong>driver&#8217;s license<\/strong>, or\u00a0<strong>national ID<\/strong>,\u00a0<strong>foreigner ID card<\/strong>, and in some cases\u00a0<strong>proof of residence<\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"how_long_does_verification_take\"><\/span><strong>How long does verification take?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is\u00a0<strong>no fixed time<\/strong>. The final duration of your process will depend on the\u00a0<strong>exchange<\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"is_it_mandatory_to_do_kyc_to_buy_crypto\"><\/span><strong>Is it mandatory to do KYC to buy crypto?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The short answer is\u00a0<strong>yes<\/strong>, if you are looking to operate with\u00a0<strong>total security and ease<\/strong>. Although the crypto world was born under a philosophy of\u00a0<strong>anonymity<\/strong>, today most platforms that allow you to buy with\u00a0<strong>euros or dollars<\/strong>\u00a0will ask you to complete this step.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"is_it_safe_to_upload_my_national_id_to_a_crypto_platform\"><\/span><strong>Is it safe to upload my national ID to a crypto platform?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Yes<\/strong>, as long as you use\u00a0<strong>recognized and regulated platforms<\/strong>.\u00a0<strong>Trusted exchanges<\/strong>\u00a0invest millions of dollars in\u00a0<strong>cybersecurity<\/strong>\u00a0to protect your personal information.<\/p>\n<p>To conclude, sometimes processes like KYC may seem like a\u00a0<strong>technical barrier<\/strong>, but in reality they are the\u00a0<strong>foundation<\/strong>\u00a0of something bigger. Cryptocurrencies are no longer a\u00a0<strong>niche for experts<\/strong>; today they are a\u00a0<strong>real tool<\/strong>\u00a0for\u00a0<strong>ordinary people<\/strong>\u00a0looking for\u00a0<strong>simple, fast, and reliable<\/strong>\u00a0solutions.<\/p>\n<p>While others get lost in technicalities, at\u00a0<strong><a href=\"https:\/\/www.bitnovo.com\/en\">Bitnovo<\/a><\/strong>\u00a0we call things as they are. We understand that\u00a0<strong>security and compliance<\/strong>\u00a0are necessary so that you can\u00a0<strong>exit the system<\/strong>\u00a0without complicating your life. In the end, it is about making the\u00a0<strong>difficult<\/strong>\u00a0look\u00a0<strong>easy<\/strong>, and being the brand that truly\u00a0<strong>delivers<\/strong>\u00a0so that you only worry about your\u00a0<strong>financial freedom<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Discover what KYC in cryptocurrencies is, its process, and why KYC verification is key to operating safely in the crypto world.<\/p>\n","protected":false},"author":12,"featured_media":31097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[165],"tags":[],"class_list":["post-30881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrencies"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/30881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=30881"}],"version-history":[{"count":5,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/30881\/revisions"}],"predecessor-version":[{"id":31100,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/30881\/revisions\/31100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/31097"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=30881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=30881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=30881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}